Terex–REV Group Merger Sets Stage for $9 Billion Specialty Equipment Powerhouse

Strategic Merger Creates Industry Leader Across Low-Cyclicality, Growth Markets

Terex Corporation and REV Group have entered a definitive agreement to merge, combining forces to become a dominant player in emergency, waste, utilities, environmental, and materials processing equipment. This union aims to create a scaled manufacturer with brands positioned in resilient, high-growth sectors less exposed to economic downturns. The newly combined company is expected to generate approximately $7.8 billion in net sales and will leverage an expansive U.S. manufacturing footprint to capture rising domestic demand.

Synergy Opportunities Expected to Drive $75 Million in Value by 2028

The deal targets substantial cost savings and operational improvements, forecasting $75 million in annual run-rate synergies by 2028—with about 50% expected within the first twelve months post-closing. Management from both companies will pool their expertise, aiming to accelerate integration and unlock these efficiency gains swiftly.

Strategic Exit from Aerials Segment Will Reduce Exposure to Cyclicality

Alongside the merger, Terex is launching a process to exit its Aerials segment—potentially via sale or spin-off—aimed at further lowering the company’s exposure to volatile end-markets. Excluding Aerials, the combined company’s adjusted EBITDA margin is projected to climb from 11% to approximately 14%, signaling enhanced profitability and stability. The resulting portfolio will center on less cyclical, more predictable market segments, supporting sustainable growth and earnings consistency.

Enhanced Scale and Financial Strength to Fuel Investments

The new organization is set to operate with a low capital intensity and an attractive leverage profile, enabling it to invest in growth and innovation while maintaining discipline. Terex and REV Group’s proven histories of successful integration add further confidence that anticipated cost reductions and efficiency improvements will be realized on schedule.

Shareholder and Governance Structure Highlights Balance and Opportunity

Upon closing, Terex shareholders will own roughly 58% and REV Group shareholders about 42% of the combined entity. The board will consist of 12 members (7 from Terex and 5 from REV Group), reflecting a balanced leadership structure. REV shareholders will receive 0.9809 shares of the new company plus $8.71 per share in cash, for a total of $425 million distributed.

Forward Outlook: What Investors Should Watch

While the combined company aims to capture value through its diversified portfolio and expected synergies, investors should watch for updates on the Aerials segment exit and monitor regulatory and shareholder approval progress ahead of the anticipated first-half 2026 closing. Additionally, future earnings reports and conference calls will offer key updates on integration milestones and synergy realization.

For more information and upcoming event access, shareholders and interested parties can visit the companies' investor relations pages. With industry dynamics favoring specialty, non-cyclical equipment, the Terex–REV merger could mark a defining moment in sector leadership—if projected cost and growth benefits come to fruition.

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